BUDGET TRANSPARENCY - SUPPORTING FACTOR IN THE CAUSAL RELATIONSHIP BETWEEN GLOBAL COMPETITIVENESS AND CONTROL OF CORRUPTION

Violeta Maria CIMPOERU

Abstract


In the last two decades, international institutions, donors, academics are interested in budgetary transparency that promotes public access to information about budgets, government policies and financial activities of governments in order to make them accessible to citizens. Social reformers promote the idea that a high score of open budget index is the main incentive to influence policymakers to adopt policies to reliably optimize public finances. The purpose of this paper is to analyze the influence of corruption at the level of sustainable prosperity, having as support factor the budgetary transparency. We also investigate the reasoning in reverse, where, in turn, corruption is influenced by the level of sustainable prosperity and we discover that the relationship between these two variables is circular. Evaluation of the results could serve as guidance for governments to investigate the effects of the adopted strategies for sustainable development and improving governance policies at national level through direct contribution to economic growth.


Keywords


budgetary transparency, control of corruption, sustainable prosperity

References


Alt, J. E. and Lowry R.C., (2010), Transparency and Accountability:Empirical Results for US States, Journal of Theoretical Politics, vol. 22(4), pp. 379-406

Alt, J.E. and Lassen, D.D. (2006), Fiscal transparency, political parties, and debt in OECD countries, European Economic Review, no. 50, pp. 1403–1439

Andrew Williams (2014), A global index of information transparency and accountability, Journal of Comparative Economics available online 5 November, xxx (2014) xxx–xxx

Asieudu, E. and Freeman, J. (2009), The effect of corruption on investment growth: evidence from firms in Latin America, Sub-Saharan Africa, and Transition Countries, Review of Development Economics, vol. 13, pp. 200–214

Badun, M., (2009), Budget Transparency, Financial Theory and Practice, vol. 33(4), pp. 481-483

Bertot, J.C., Jaeger, P.T., Grimes, J.M. (2010), Using ICTs to create a culture of transparency: E-government and social media as openness and anti-corruption tools for societies, Government Information Quarterly, vol. 27, pp. 264–271

Besley, T. and Burgess, R. (2001), Political agency, government responsiveness and the role of the media, European Economic Review, vol. 45, pp. 629–640

Besley, T. and Burgess, R. (2002), The political economy of government responsiveness: theory and evidence from India, The Quarterly Journal of Economics, pp. 1415–1451

Besley, T. and Burgess, R., (2001), Political agency, government responsiveness and the role of the media, Europe Economics Review, no. 45, pp. 629–640

Brunetti, A. and Weder, B. (2003), A free press is bad news for corruption, Journal Public Economic, vol. 87, pp. 1801–1824

Djankov, S., McLiesh, C., Nenova, T., Shleifer, A., (2003), Who Owns the Media?, Journal Law Economics, XL (VI), pp. 341–381

Go Kotera, Keisuke Okada, Sovannroeun Samreth (2012), Government size, democracy, and corruption: An empirical investigation, Economic Modelling, vol. 29, pp. 2340–2348

Haque, M.E. and Neanidis, C.K. (2009), Fiscal Transparency and Corruption Centre for Growth and Business Cycle Research, Economic Studies, vol. 114, pp. 1-7

Heald, D. (2012), Why is transparency about public expenditure so elusive?, International Review of Administrative Sciences, vol. 78 (1), pp. 30–49

Kopits, G. and Craig, J., (1998), Transparency in government operations, International Monetary Fund occasional paper no. 158, ISSN 0251-6365, Washington, D.C. 20431, U.S.A.

Mauro P. (1995), Corruption and growth, The Quarterly Journal of Economics, vol. 110(3), pp. 681–712

Munteanu, A. I. (2015), Exists a relationship between strategic human resources management, innovation and competitive advantage?, Ecoforum, vol. 4, no. 1(6), pp. 105-110

Persson, T. and Tabellini, G. (2000), Political Economics: Explaining Economic Policy, MIT, Cambridge

Prat, A. (2006), The wrong kind of transparency, American Economic Review, vol. 95 (3), pp. 862–877

Renzio, P. and Masud, H. (2011), Measuring and Promoting Budget Transparency: The Open Budget Index as a Research and Advocacy Tool, An International Journal of Policy, Administration, and Institutions, vol. 24(3), pp. 607–616

Sedmihradská, L. and Haas, J., (2012), Budget transparency and fiscal performance: Do open budgets matter?, MPRA Paper No. 42260, http://mpra.ub.uni-muenchen.de/42260/, Accessed 30 July 2014

Svensson, J. (2005), Eight questions about corruption, Journal of Economic Perspectives, vol. 19 (3), pp. 19–42

Wehner, J. and Renzio, P., (2013), Citizens, Legislators, and Executive Disclosure: The Political Determinants of Fiscal Transparency, World Development, vol. 41, pp. 96–108

Weil DN. (2008), Economic growth, second edition Boston: Addison-Wesley

www.openbudgetindex.org

www.govindicators.org/wgi/Control Corruption

http://www3.weforum.org / docs / WEF_GlobalCompetitiveness Report _2012-2013.pdf


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.